SEC Spares Gemini, Offers Full Crypto Refund with a Side of Legal Drama

by

Well, isn’t this one for the crypto history books? The U.S. Securities and Exchange Commission, that odious guardian of our financial fates, has inexplicably dropped its civil lawsuit against Gemini Trust Company. A relief for the geeky Gemini twins, Tyler and Cameron Winklevoss, whose combined IQ must approach that of a slightly overcaffeinated goldfish.

This crikey development followed Gemini Earn users getting their crypto back in a move so gracious it’ll make you question why banks ever charge fees. The long, agonizing legal saga began in 2023, which feels like ago enough to call it a “resolution.” As if.

SEC & Gemini: A Love Story Ended by Refunds

According to a 23 January 2026 filing that reads like a legal nap-inducing mishmash, the SEC and Gemini agreed to “dismiss with prejudice”-code for “we’re done, and we’re not coming back, even if you scream.” The SEC claimed this was all part of their hallowed investor protection plan, though it’s probably easier to say “we did it for the vibes, okay?”

Impressively, affected Gemini Earn users saw their crypto returned in full (and not in cash, because why would you?). These magical restitutions happened between May and June 2024 during the Genesis Global Capital bankruptcy, which must’ve felt like a rollercoaster for all the wrong reasons.

The SEC, in a rare moment of humility, noted that “investor harm was significantly reduced”-which sounds suspiciously like a lawyer botching a Shakespeare quote. By “reduced,” they likely mean “not publicly mocked on Twitter.”

The U.S. Securities and Exchange Commission today filed a joint stipulation with Gemini Trust Company, LLC to dismiss, with prejudice, its ongoing civil enforcement action against the company. The case originated from an enforcement action initiated in January 2023 concerning the…

– Wu Blockchain (@WuBlockchain) January 23, 2026

The SEC also mentioned Gemini had already sorted similar troubles with various states, as if to say, “We’re lenient because everyone else is, too.” Truly, an avalanche of bureaucratic cosiness.

The saga Begins (Because It’s Never Simple)

Back in December 2020, Gemini teamed up with Genesis, a crypto lender that probably followed the business plan: “borrow crypto, pay interest, then collapse in a fireball of bad PR.” Through this stellar partnership, Gemini users could lend their crypto for interest-because what could possibly go wrong?

Of course, by 2022, Genesis was imploding harder than a house of cards built by a drunk jester. Withdrawals froze, leaving users stuck with $900 million in crypto assets (and $340,000 more fish in a barrel). Poor Gemini then had to cough up $40 million in Bitcoin, $10 million in other crypto, and a $37 million penalty to New York regulators. Classy move.

Eventually, Gemini waded through a crossword puzzle of legal formalities at both state and federal levels, with the full repayment of users acting as the last piece of the puzzle. Like a giant corkboard of payments, glued together with regulatory goodwill and legal jargon.

Read More

2026-01-24 07:36